The rejection of low prices and the reluctance of sellers to mark effective lower lows suggest a bullish respite shortly. It is unclear whether the price can resume the strong long-term upward trend or will only be a pullback to fall again.
The price of Binance Coin (BNB) has fallen along with the bearish tide in the crypto market. However, it has not reached levels as low as the value of other cryptocurrencies like Bitcoin (BTC).
BNB is trading at around USD 207 and has accumulated a 7.4% loss over the last 24 hours. While its daily trading volume is above USD 1.71 billion, its market capitalization is about USD 33.82 billion. It occupies 5th place in the cryptocurrency ranking, according to CoinGecko.
Due to the recent decoupling of BNB Chain and Binance, the main currency of that blockchain took a different direction. That may have helped prevent further losses in the BNB price after the SEC launched an investigation into Binance.
Changpeng Zhao recently highlighted the need to distinguish between good regulation and over-regulation, as the latter would stifle innovation. The CEO of Binance also said governments should establish a new regulator for the industry.
Zhao considers that regulators should take a relaxed approach in some areas to allow the industry to grow and develop. He also said that it was crucial to classify cryptocurrencies to avoid placing crypto assets with different use cases in a single bucket.
Daily Technical Analysis of the Price of BNB
The daily BNB/USDT shows a short-term bearish momentum, which may have bottomed out.
There has been a rejection of low prices, the reluctance of sellers to mark effective lower lows, and an oversold. That indicates that there could be at least a respite in the short term.
After a possible rebound, there might be further selling again, but that would only change if the bulls start to mark increasingly higher lows.
The Price Remains above a Relevant Support Zone
The weekly BNB/USDT chart shows that the bulls are trying to keep a relevant support zone again. They previously started strong bullish rallies at that point.
The current point seems excellent for the price to start at least a respite to the upside. However, it is not clear whether it can resume the strong long-term bullish trend or will only be a pullback to fall again.
The value of BNB seems not to have yet reached the bottom of the bearish market. The 200-weekly SMA could be a place of interest for the cryptocurrency during this decline, which is near USD 155.
There is less space for selling, as the Relative Strength Index (RSI) indicates an oversold like the one seen in early 2019. At that time, the price of Binance Coin hovered around USD 5. The small volume in recent weeks also signals little interest in driving the price much lower.
Even though the price of BNB has not reached levels as low as other cryptocurrencies, it is convenient to research before investing in it. Knowing how the market of that cryptocurrency behaves will allow investors to make more accurate decisions.
By Alexander Salazar
